Giving employees a stake in the business they help to run is one of the most effective ways to attract talent, reward performance, and align everyone’s interests with the long-term success of the company. The right scheme can also deliver significant tax advantages for both the business and its employees. At BWS Law, our solicitors advise companies on setting up, implementing, and managing employee share schemes that work for the business and its people.
At BWS Law, our work in this area covers all aspects of employee share schemes, including:
There is no single employee share scheme that suits every business. The appropriate scheme depends on the size and structure of the company, its growth plans, the employees it wants to reward, and the tax outcomes it is trying to achieve. The main HMRC-approved schemes each have their own qualifying conditions, limits, and advantages.
Our corporate law solicitors advise companies on the options available, explaining the practical and tax implications of each in clear terms so that you can make an informed decision.
EMI schemes are the most widely used share option arrangement for smaller, growing companies. They offer substantial tax advantages for both employer and employee and are relatively flexible in how they can be structured. To qualify, however, the company and the options granted must meet specific conditions set by HMRC.
Our solicitors manage the full process of setting up an EMI scheme, from checking that the company qualifies through to drafting the option agreements and rules, registering the scheme with HMRC, and advising on the valuation of shares. We make sure the scheme is structured correctly from the outset so that the tax benefits are protected.
The legal documents underpinning a share scheme need to be drafted carefully. Scheme rules set out how options are granted, when they vest, what happens on a sale or exit, and how leaver provisions operate. Option agreements record the individual terms agreed with each participant.
Our solicitors draft scheme rules and option agreements that are clear, legally compliant, and tailored to the company’s individual circumstances. We make sure the documents reflect the business’s commercial intentions and that participants understand exactly what they have been granted and on what terms.
A share scheme only delivers its full value when participants can realise their shares. On a sale, listing, or other exit event, the treatment of options and shares under the scheme rules needs careful attention to make sure participants receive what they are entitled to, and the process runs smoothly.
Our solicitors advise companies and employees on the treatment of scheme shares and options in the context of a sale or other liquidity event. We make sure the scheme documentation is consistent with the deal structure and that no participant is left worse off through poor planning.
Share schemes put in place years ago may no longer reflect current HMRC requirements, the company’s current structure, or its current workforce. An outdated scheme can create unexpected tax liabilities and fail to deliver the benefits it was designed to provide.
Our corporate law solicitors review existing share schemes, identify issues, and advise on the changes needed. Where a scheme has run its course or is no longer fit for purpose, we advise on winding it up and replacing it with an arrangement that better serves the business.
Whether you are setting up a scheme for the first time or reviewing an existing arrangement, our solicitors are well placed to advise you on the right approach for your business.
BWS Law is based in Loughborough and has advised businesses across the East Midlands and beyond for many years. We understand the environment that local and regional businesses operate in, the pressures they face, and what matters most to the people running them. That context shapes the advice we give and the way we work.
Employee share schemes sit at the intersection of company law, employment law, and tax. Getting the structure right requires all three to be considered together, not in isolation. Our corporate law solicitors work closely with tax advisers and accountants to make sure the schemes we set up are legally sound and tax-efficient from day one.
A share scheme only works if participants understand and appreciate what they have been given. Our solicitors help companies communicate the scheme to employees clearly, explaining the key terms, the potential value, and the tax position in straightforward language. Employees who understand their scheme are more engaged with it, which means the business gets more of the benefit it was designed to deliver.
We are clear about costs from the start and charge competitive rates for work completed to a high standard. Our experience in employee share scheme work means we run matters efficiently and avoid unnecessary issues that increase cost. Clients receive real value for money from a corporate law team that is truly invested in their matter.
If you are considering an employee share scheme, contact us today to find out how we can help.
To find out more about how we can help, please call us on now on 01509 232611 or Click here to make an enquiry.
